JJC is an ETN that holds only a single commodity, the Copper High Grade futures contract.

Price action predicted last week’s trading and followed through as expected. JJC closed lower than the previous close and below the midrange, forming bearish price action. Currently approaching our downside price target, expect JJC to trade lower this coming week, finding support above $44. The correction made new monthly lows last week, nearing our monthly price objective of 44.93. Any trading below this point, during the month of October, is exceptional and abnormal. Friday’s daily gap lower open and lower close is an intellectual indicator of the bearish sentiment that should continue this Monday morning.

For the fourth week, USO has failed to establish a clear direction, trading entirely within the previous week’s range. WTI has found support above $88 and strong resistance below $94 since mid-September. Price action was slightly bearish with a lower weekly open, lower close and close below the midrange. Stagnant movement has plagued many of the markets, especially commodities, as investors remain hesitant to make any major bets before the presidential election. For this reason, we maintain our flat position.

Price action was bullish last week, making new monthly highs by one cent and closing above the midrange. We would have liked to see our next profit taking price traded last week; if this week doesn’t trade 23.57 we will reevaluate the trade. In four weeks, our current long position in UNG has generated $464,025 in total profits and locking-in over $250,000. Our second profit-taking price of 23.57 was only 0.19 away from being fulfilled; look to cover these 22,500 shares this week. The current trade entry was based on a very profitable I.T. pattern that occurs less than twice a year: buying the first correction following a bullish trend reversal.

About the Author

Parrish Hicks Capital Research is a trading and technical analysis firm that specializes in Energy and Metal commodity futures. The two founders, Jim Parrish and Kris Hicks, have a combined 38 years’ experience in the commodity business and in 2011 accurately forecasted both $25 moves to the downside in May and July and the $25+ move to the upside in October. They also called the all-time high day for Gold on September 6, 2011 and forecasted a projected downside target of 1528.10 in March 2012. Their trading methodology has a high degree of accuracy which confirms tops/bottoms, projected trading ranges and projected targets for those ranges. Their expertise is focused on 16 commodities plus the comparable ETF markets. You can reach them at Jim@ParrishHicks.com and Kris@ParrishHicks.com or at www.ParrishHicks.com.

IMPORTANT DISCLOSURE

Transactions in ETF (Exchange Traded Funds) carry a high degree of risk. This material is not intended as an offer or solicitation for the purchase of any financial instrument. The data and these comments are provided for information purposes only and may or may not be intended to be used for specific trading strategies. ETF trading is risky and Parrish Hicks Capital Research assumes no liability for the use of any information contained herein. Any examples are strictly hypothetical and no representation is being made that any person will or is likely to achieve profits or losses similar to those examples. ETF strategies mentioned herein may not be suitable for all investors. The opinions and recommendations herein do not take into account individual client circumstances, objectives or needs and are not intended as recommendations of a particular ETF or ETF strategies to a particular client. The recipient of this report must make his own independent decisions regarding any ETF instrument to a particular client.